India is the fifth-largest military spender in the world. India spent $92.1 billion on defence in 2025, according to the most recent study from the Stockholm International Peace Research Institute (SIPRI), which monitors worldwide defence trends annually.
This is an increase of 8.9% over the prior year. The nation was responsible for 3.2% of all military spending worldwide. Only four nations—the US, China, Russia, and Germany—spent more.
The increase occurred a year after India began Operation Sindoor against Pakistan and made emergency purchases to stay prepared for combat.
It's interesting to note that India was ranked fifth in the 2024 rating that was published last year.The top three—the United States, China, and Russia—collectively spent $1,480 billion, or 51% of the total worldwide.
China and Pakistan's Position

• The neighbours of India increased their spending as well.
• With $336 billion, China continued to rank second in the world.
• Pakistan spent $11.9 billion, an 11% increase.
• Out of the 40 nations that SIPRI monitored, Pakistan came in at number 31.

According to SIPRI, tensions with China and Pakistan are a major factor in India's arms imports and spending trends.Worldwide Military Expenditure Reaches a Record
In 2025, global military spending reached $2,887 billion. That represents a 2.9% increase over 2024. It represents the largest portion since 2009 at 2.5% of the world's GDP.
The largest motorist? Europe.

• Spending in Europe increased by 14% to $864 billion.
• Spending in Asia-Oceania increased 8.1% to $681 billion.
• Sharp rises were observed in NATO nations like Belgium, Spain, Norway, Denmark, Poland, and Canada. Germany moved up to fourth place in the world with a 24% increase.India is still the second-largest buyer despite a decline in arms imports.

Another report on arms transfers was published by SIPRI in March. It revealed that between 2016–20 and 2021–2025, India's imports of weapons decreased by 4%. However, with 8.2% of global imports, India continues to be the second-largest importer of weapons worldwide.
According to the research, India is progressively moving away from Russia and increasing its purchases from the US, France, and Israel. Russia is still the biggest provider, though.
Push for a Budget Following Operation Sindoor
The government significantly increased funding on February 1, 2026. India allocated Rs 7.85 lakh crore on defence in the Union Budget for 2026–2027, an increase of more than 15%. The capital outlay is Rs 2.19 lakh crore. The funds will be used for:

• Helicopters, cargo planes, and fighter jets
• Submarines and warships
• Rockets, missiles, and artillery guns
• Unmanned systems and drones
• Intelligent weaponry and monitoring systems

The message is very clear: preparedness and modernity. According to SIPRI experts, 2025 represents a phase of worldwide rearmament.
The conflict between Russia and Ukraine is causing Europe to rearm.
China has increased expenditure for the 31st year in a row; Ukraine now spends 40% of its GDP on defence, the largest amount in the world; and US allies in Asia, such as Japan and Australia, are increasing their investment.